HomeMy WebLinkAbout07.05.11 Council Retreat Packet
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I
i
AGENDA i
CITY COUNCIL RE1lREAT
July 5, 2011
3:30 P.M. I
2012 BUDGET WORK ~ESSION
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Mission Statement
Through teamwork and cooperation,
the City of Farmington provides quality
services that preserve our proud past and
foster a promisingfuture.
City of Farmington
430 Third Street
Farmington, MN 55024
1. CALL TO ORDER
2. APPROVE AGENDA
3. DISCUSS CITY AND EDA BUDGETS
4. ADJOURN
PUBLIC INFORMATION STATEtENT
Council workshops are conducted as an informal work session, all discussions shallibe consideredfact-finding, hypothetical and unofficial
critical thinking exercises, which do not reflect an d[ficial public position.
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Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of aformal City policy
position. Only official Council action normally taken at a regularly scheduled Councir meeting should be considered as aformal expression of
the City's position on any given itter.
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO: Mayor, Councilmembers
FROM: Kevin Schorzman, Interim City Administrator
Teresa Walters, Finance Director
SUBJECT: Budget Work Session
DATE: July 5, 2011
Bude:et Priorities Worksheet
Enclosed on page 5 of this document, is a list of the items discussed during the Department
Council meetings held from April-June 2011. Thelist will be viewed as an Excel document on
the computer at the workshop. It is set up so that you can view the impact of your decisions on
the tax rate and the amount the average homeowner would pay based on the calculated tax rate.
You have the ability to change all yellow hi-lighted cells.
When you receive the file, it will show all items with "No" in Column D. With all items at
"NO", you will still see a $255,563 increase in the levy (at the bottom of the page). This is the
amount of the debt 'service and operations levy increase for all essential items. A list (by
department) ofthe increases is provided for you on pages 7-9 of this document. A summary of
the overall levy uses and the distribution to the various debt service funds is shown on page 10.
The following is an explanation of the worksheet (sent as a hard copy on page 5 and as an
excel spreadsheet):
Column A is a description of the item requested. These are all broken out into categories to help
you better determine priorities.
Column B is the amount we recommend to begin funding the various items listed in Column A.
This number can be changed to reflect the amount you feel should be funded.
Column C is here to help you rank your priorities.
Column D determines whether or not you would like to include this in the budget. If you click
on the cell, you will see a drop-down menu. You can choose "Yes" or "No". If you choose
"Yes", Column E will automatically fill in with the amount added to the budget. If you choose
"No", it will populate the cell with "0". Column E is locked. If you would like to change the
amount, please change it in column B.
When you go down to the bottom of the sheet, you can see the impact on the average homeowner
with a home valued at approximately $200,000. You can also see the percentage tax rate
increase.
The followmgis an explanation of some of the items listed:
Maintenance and Replacement of Equipment and Infrastructure:
1. Create an Equipment Replacement Fund: In 2011, the final payment in the amount of
$162,600 will be made for an Equipment Certificate Bond. The Council has expressed an
interest in setting up an Equipment Replacement fund that will allow us to do long-term
planning for equipment replacement expenditures.
2. Funds to Trail Maintenance: As discussed at the Parks and Recreation workshop, this
money would begin to fund a long-term trail maintenance plan.
3. Funds to Cover Park Redevelopment: Planning for replacement of existing park features
was. discussed at the Parks and Recreation workshop. A long-term plan for replacement
and repair of existing items such as shelters, courts, and playground equipment would be
created and funded with this money.
4. Funds to Cover Seal Coating: As discussed previously, this funding would be used to
continue the City's Annual Seal Coating Program.
5. Funds to Cover Street Rehabilitation: This funding, along with funding from other
sources, would be used to cover expenses associated with the City's long-term street
rehabilitation and reconstlUction program.
6. Funds to Cover Computer Equipment: As discussed at the HR/IT workshop, this money
would be used to fund the long-term plan for replacement of the City's technology
equipment (computers, servers, switches, etc.)
7. Funds to cover Fire Equipment Replacement: The Equipment Replacement Fund will
include all vehicles including Fire trucks. Equipment would be replaced by thefue
department accOtdingto along~telm plan created based on the funding level. Some of
these itell1S would include air tanks, turnout gear, etc.
8. Funds to cover Building Maintenance: This funding would be used to cover expenditures
related to City Buildings. A long-term plan would be created to address future needs for
which no funding is currently set aside. Some of these expenditures include roof repair
and replacement, garage door replacement and repair, paint, flooring, etc.)
Additional Staffing
1. Part Time Staff Finance: This funding would provide for a pmt-time staff person in the
Finance Department per direction received at the Finance workshop, The full amount is
requested since the reduction was already taken in the budget submitted to you).
2. Administrative Support Staff: As discussed at the Administration workshop, this funding
would provide for 1 full-time or 2 part-time administrative SUPPOltStaff positions.
2
Other - Council Requests
This area is for you to add your own additional items that may not be listed by staff.
Other ~ funded by additional Fiscal Disparities
As mentioned in the spreadsheet, this has no impact on the levy. It will not change the bottom
line number. This is to determine what percent of the additional fiscal disparity revenue (if any)
you would like to add to distribute to Park Improvement and to the EDA.
General Fund Summary
A summary of the General Fund Budget is provided for you on page 6. The summary shows a
breakdown of each of the department expenditures (towards the middle of the page) as well as
the total increase (See "Increasel(Decrease Y' Column) which ties to the detail shown on pages 7-
9.
Revenues are shown at the top of the page. The increase in General Property taxes includes the
increase in Ad valorem taxes, Fire Levy, and Fiscal Disparities. If Council wishes to reduce any
revenue line item, it should be included in your spreadsheet (uudel' "Other Council Requests) as
an increase in the tax levy. If Council chooses to increase any revenue line ite114 please include
it on the spreadsheet as a reduction to the levy. The $3,300 increase in "Miscellaneous" revenue
is for the Farmers Market. This has been moved from the EDA to the General Fund Community
Development Department. This revenue is used to offset some of the expenditures which were
also moved.
The $8,500 reduction in the 2012 Admin Adjustment column is for Turnout gear in the fire
depal'tinent. If the Council does not appl'ovefunding the Fh'e Equipment replacement plan by at
least $8,500, we will not have the funds to purchase tumout gear..
The summary also shows revenue in excess of expenditures in the amount of $233,973. This is
the amount of additional Fiscal disparity revenue anticipated to be received in 2011. The amount
remains in the budget to be distributed to the EDA and Park Improvement fund (or any other
source the council chooses) in 2012. We will not know if or how much additional :fiscal
disparity revenue we will receive for the 2012 budget until August 2011. Since we do not know
if we will receive this revenue, it has been entered in the budget as a place-holder and cannot be
used as General Fund operating revenue.
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R~ccntCost Saving Initiatives.. Budf?ct Reductions and 2011 Expenses not EJDcrienced in
2012
The budget as shown includes the followingl'eductions from last year:
Savine:s,:
Debt Service Payment for Equipment 162,600
Certificate 2005D
Savings from Combined NewsletterlPark and 10,000
Rec Brochure
Savings from New Cleaning Contract 33,000
Two months of the Accountant's position 14,136
(Salary and Benefits)
Total 219.736
1n2011 Council reduced the budget by approximately $471,000. This included the following
positions:
Staff Reductions:
Administrative Services Director Position 1 08~820
Administrative Assistant Position 12,900
ReOl'ganization of the Maintenance Staff 86,382
Accountant Position 68,541
Total 336 643
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Costs for Additional Plans, Programs, and Personnel
Maintenance and Replacement of Equipment and Infrastructure:
Create Equipment Replacement Fund
Funds to Cover Trail Maintenance
Funds to Cover Park Redevelopment
Funds to Cover Seal Coating
Funds to Cover Street Rehabilitation
Funds to Cover Computer Equipment
Funds to Cover Fire Equipment Replacement (air tanks, turnout
gear, etc.)
Funds to Cover Building Maintenance (Roof, garage door,
flooring, paint)
Additional Staffing:
Part-time staff (Finance)
1 Full-time or 2 Part-time Admin. Staff
Deficit Reduction/Future Operation:
Funds to Eliminate Pool and RRC Deficit
Improvements to Buildings and Parks
Funds for Fuel Station and Salt Storage
Other - funded by additional Fiscal Disparities (This
has no impact on the Levy)
Funds Dedicated to Park Improvement
Funds to Eliminate EDA Deficit
IOther
Total Additions to 2012 Budget:
Approximate Annual Tax Impact to Average ($199,800) Home:
Tax Rate Increase
$ 162,000
$ 25,000
$ 25,000
$ 350,000
$ 600,000
$ 20,000
$ 30,000
$ 20,000
$
$
25,000
50,000
1$ 155,000 I
~ $ 250,000 I I
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
50%
50%
0%
0%
No
No
No
No
No
No
No
No
Include In Total
Priority 2012 Budget? Additions
$
$
$
$
$
$
$
$
BI~~
I :
I INo
I $
~ INo
I $
No
No
No
No
No
No
No
No
$
$
$
$
$
$
$
$
~~
0%
0%
0%
0%
255,563
31.23
2.98%
CITY OF FARMINGTON, MN ANNUAL BUDGET
GENERAL FUND
FUND SUMMARY
I '";;,:';-",. 201111012
i;~d12ADMIN 1012 >I'ERCeN1
,0,0. USTNIIWt ADM CHANGE
$
REveNUES
General Property TaXes 6,747,049 7,2$9,79$ 1,0$4,6<17 7,084,547 7.346.056 7.346,~56 281,509 3.7%
Ucensa$ &~rml\$ 376,183 454,7$9 431,466 431,465 431,455 431.465 0.0%
FInel! & Fotfeltures 67, t65 64,779 70,QOO 70,000 70,000 70,000 O.()%
Interest 2$6,656 166,124 200,000 200,000 200,000 200,000 0.0%
Intergovemmental 423,939 466,622 406,690 405,690 405,690 405,590 0.0%
ChargeS forl!ervlces 684,932 663,090 676,878 578,678 578,678 678,678 0.0%
MIl!ceUaneoul! 108663 6.5 648 69000 74000 2300 7 3 4.8%
Total Operating Revenue 8 596466 9 049790 8839 270 8 644 270 9 04 07 3.0",1
Transfers In:
EDA 0.0%
Uquor Operations 63,996 68,300 70,007 70,007 70,007 70,007 0.0%
Sewer 63,996 66,300 70,007 70,007 70,007 70,007 0.0%
stormWatar 63,996 66,300 70.007 70,007 10,007 70,007 0.0%
Refuse 63,996 6t1,3oo 70,007 70,007 70,007 70,007 0.0%
Watef 63 996 66300 70 Oa7 70 007 0007 70 007 0.0%
Total Trsnsfers In 319 $0 331 500 350 036 350 350 036 360 035 O.O~
Total Revenue 8.916,446 9,381,290 9,189,305 9,194,305 9,454,114 9,454,114 264,S09 2.9%
eXPENDITURES
Administration 1,033.871 1 ;091,880 932,197 932,197 957,965 957,966 25,76!! 2.8%
Human Resources 250,883 259,274 238,169 238,169 248,894 246,894 10.735 4;6%
Finance 538,794 478,490 429,656 429,668 429,096 429,096 (56!) ..0.1%
Pollee 3,602,620 3"'738.893 3,868.994 3,$68,994 3,960,199 3,980,199 ~1,205 2.4%
Fire 677.986 697.243 714,0&5 770,623 809,762 (6,500l 801,262 87,171 12.2%
Engineering 836,652 767,664 $96,888 896.888 933,549 933,549 $,683 4.1%
MuniCIpal Sel1lfces 847,666 846,699 802.352 802.362 816,733 816,733 14,361 1.6%
Parks & recreation 884 0 931667 888 481 888461 931 743 931743 5 62 6. 0/.
Total expenditures 9 009620 8768 792 8 825 330
Transfers out;
RecreatiOn operating 175,000 140,700 140,700 0.0%
Arena
Debtservlce
Total transfers oul
Total Expendllufll$ 76676 0.6%
Excess(Dellclency) of
Revenues and other llnanclng
sources over Expenditures 120,367 60,962 45,840 (5,698) 225,473 8,500 233,973 188,133 0.0%
ConUngency (45,84.0)
Fund Balance beginning
of year 2037513 21 880 2218842 18842 2 218842 2 218 842 0.0%
Fund Balance end of year 2 157 880 2213 144 2444315 2462 815 188133 6.5%
6
Budget Increases
1013
1010
Elections
Administration
Salary & Benefits
Dues
Training
Benefits
CityHaU
Salary & BenefIts
Equipment Supplies
Building Supplies
Cleaning Supplies
Other supplies
Prof aves (Cleaning)
Municipal Services
Electricity
Natural Gas
Equipment Maintenance
Building Maintenance
Total City Hall
Communications
Community Development
Dues
Training
Program Expense
Total Com Dav
TOTAL ADMIN
1015
1014
1035
1011 Human Resources
Salary & Benefits
Professional Services
Amount
Explanation
$
19,798 Election year
$
1,372
(900) Admin Svc Director
(510) Admin Svc Director
(38)
3,465
950
650
(1,000)
500
(24,445)
3,800
12,250
2,250
(10)
1,000
(690)
200
$
$
$
500 Chamber directory
490
3,300 Moved Farmers Market
4,290
$
23,660,
2,515
3,500 City wide Training
Information Technology
Capital
1021 Finance
Salaries and Benefits
Promote Existing Staff
Overtime
Dues
Training
Mise
Training
1022 Risk Management
Insurance Premiums
TOtAL ftNANOE
35,700
$ 36,700
(14,136)
6,139
(2,000)
25
700
(100)
$ (9,372)
$ 7,885
$
(1,487)
7
1051 Patrol Services
Salaries and Benefits
Supplies
Fuel
K-9
Dues
Officer Training
Radio Contractual Services
Total Patrol Services
1052 Pollee Investigations
Salaries and Benefits 11,248
Equipment Supplies 1,170
.' ^ 'd ,,_ "W" I~t~I.lnv~stiJl-at!~ns.,..". $ 12,418
~~~\mt%t.~i&~~~~!l~tY~lf~~1:1l~]ImR~1!l~~%I{I~t~~i~1il~I~~~~\lt~*~~;$~~~~~t~i:~~~'14t~iil~f38:1;;fl
1060 Fire Dept
Salaries and Benefits
Fire Levy Pension
Equipment Supplies
Other supplies
Uniforms
Professional Services
Cell phones
Electric
Training & Mileage
Equipment Repair
Building Repair
Contractual services
Total Fire Dept
1061 Fire Rescue Services
Other supplies 500
Equipment Supplies 500
:',;;.,:m;:i.if~~t:jt)~;z~,ll;:~iimW~?~~afij}~~ji~!~.;;~1iKi;:U;;I;';i;:":';F~Nf;:tMf~;]1:~!~~g;'~f$!^t~\;;
$
50,393
3,500
5,000
500
2,000
3,000
570
64,963
$
24,372
48,825
792 Pager and radio batterie:
1,000 Nozzles
2,900 turnout gear and uniforrr
4,730 Annual pump testing
(500)
1,500
(494)
265
250
225
83,865
.:~~ ./.,.t;\.t;;~.::\.;;}
\,:.,':.~:.:';.:i:'_;.",';':'
>"';8' 4' :8' 65)
~':-"--+)'. -, .:'.~
70-
1030 Planning
GIS Fees
Dues
Training
Total Planning
Inadverdantly left out of
17,200 last year's budget
125
500
$ 17,825
i07t) Engineering
Salaries & Benefits
6,833
Survey - Engineering Supplies
Total Engineering $
Concrete and
Aggregate Testing
Equipment as
4,300 discussed at workshop
11,133
1031 Building Inspections
Salaries & Benefits
$ (4,688)
.1076 Natural Resources
Salaries & Benefits
Vehicle Maintenance
Training
92
800
200
Professional Services
Total Natural Resources $
Tree and Stump
5.000 removal, Tree planting
6.,092
TOTAL ENGINEERING
$
30,362
8
1072 Streets
Salaries & Benefits
Street Material
Building Supplies/Parts
Traffic Sign Replacement
Fuel
Uniforms
Professional Services
Municipal Services
Electric
Printlng
Building Maintenance
Supplies
Total Streets
1073 Snow
Salaries & Benefits
Vehicle Supplies
Street Material
Fuel
Repairs
Total Snow
(11,927)
6,000
500
1,000
(2,000)
(100)
(4,155)
200
5,000
(100)
550
(30)
$ (5,062)
(3,307)
5,000
10,000 Sand, Salt
7,000
750
$ 19,443
i'i~'i't:i!;!;':ii;@;Y;(;)):rl,.W~~;t:iM;gtqTAl-.:fMUNIC'1 PA.JJ..;.$VQ,$~Ji;I;)i(;iii~;iW~;);;;;?;$it\\Y .... ..... ". ..,>'if'" M381 ;.1
8 c::>....
1090 Park. Maintenance
Salaries and Benefits
Equipment Supplies
Vehicle SuppHes
BUilding Supplies
Other supplies
Landscape Materials
Chemicals
Fuel
Uniforms
Prof svcs (Cleaning)
Cell phones
Electric
Dues and Subscriptions
Training
Mileage Reimbursement
Equipment Maintenance
Equipment Rental
Total Park Maintenance $
1094 Recreation Admin
Other supplies
Legal fees
Duesl Subscriptions
Training
Mileage Reimbursement
Total Rac Admin $
1095 Recreation
Salaries & Benefits
Othersuppltes
Program Expense
Total Recreation $
11,614
(330)
2,550
600
4,253
(1 ,625)
2,950
2,000
(550)
11,389
(55)
1 ,400
(170)
(860)
600
2,200
3,600
3~M)66
900 Fuel
(500)
118
400
(600)
318
610
400
52
1,062
TOTAL PARKS & RECREATION
Total Budget Changes
IT Changes (Capital)
Total General Fund BUdget Changes
$
40,946
$
$
280,123
30,526
310,649
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Levy Use
General Fund
MVC - State Levy
Fire Relief Levy
General Levy Total
G.O. Improvement ~ 2003A $
G.O. Improvement - 2005A
G.O. Improvement ~ 2005B
G.O. I1nprovemen.t - 2006A
Equipment Certifwate ~ 20050
G.O. Improvement - 200gA
Wastewater Treatment ~ 1995
Public ProjectRevenue ~ 2010A
a.o. Capital Improvement. 2005C
G.O. Capital Improvement -2001A
Public Safety Revenue Bonds ~2001 (DCe
Street Reconsu:uction ~ 201 OC
Ice Arena Equipment Certificate - 201 OD
Total Levies Above the General Levy
Grand Total Levies
2010 Levy 2012 Levy Difference
$ 5,415,396 $ 5,628,080 $ 212,684 3.93%
415,051 415,051 0.00%
131,115 180,000 48,825 37.22%
$ 5.961,622 $ 6,223,131 $ 261,509 4.39%
Levies Allowed Above
Legislative Limits
249,918 $ 320,000
196,450
127,500
350,000
200,000
509,572
162,600
60,000
390,000
144,120
733,100
59,450
75,000
20,000
40,000
60,000
395,000
166,471
131,037
6(},000
151,9%
$ 2,604,360 $ 2,598,414
$ 8,565,982 $ 8,821,545
$ 70,082 28.04%
$ 196,450 100.00%
(72,500) -36.25%
(159,572) ~31.31%
(162,600) ~100.00%
40,000 100.00%
0.00%
5,000 1.28%
22,351 15.51 %
(2,663) ~O.36%
550 0.93%
(75,000) -100.00%
131,956 659.78%
$ ($,946) -0.23%
$ 255,563 2.98%
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